The House of Representatives on Sunday passed the long-delayed Federal Civil Service Bill, introducing sweeping changes to the structure, tenure, and post-retirement provisions for government officials. The bill includes a mandatory two-year "cooling-off period" for civil servants seeking reappointment to public office after retirement, a measure aimed at curbing political bargaining and conflicts of interest.

The bill, which had been under consideration in the State Affairs and Good Governance Committee for an extended period, was approved without amendments after a political compromise was reached earlier this month. One of the main points of contention was the length of the cooling-off period. The Nepali Congress had pushed for a two-year requirement, which was ultimately adopted despite initial reservations from coalition partner CPN-UML.

Under the new legislation, the tenure of Nepal’s Chief Secretary will be reduced from three to two years, while that of Secretaries will be cut from five to four years. The mandatory retirement age for civil servants will gradually increase from the current 58 to 60 years over the next three fiscal years. The age limit will remain 58 for the current fiscal year, rise to 59 in the next, and reach 60 in the third year of implementation. Provincial and local governments will be required to align their civil service regulations with this age standard.

The legislation also introduces a 15-tier civil service structure, designating the Chief Secretary as occupying the top (15th) tier. A new position of Additional Secretary, classified under the 13th tier, has also been added. Employees currently holding this rank will not be subject to fixed-term limits. However, all civil servants, regardless of position, will be required to retire at age 60 once the transition is complete.

The two-year restriction on post-retirement appointments means no civil servant can immediately assume a new government role after retirement. This provision is designed to discourage backdoor lobbying and ensure greater transparency and professionalism in civil service appointments, according to committee chair Ramhari Khatiwada. However, reports have surfaced that this provision is not applicable for high-ranking officials including secretaries and joint secretaries due to a sub-clause added to the bill allowing them to enjoy the privilege.

During Sunday’s parliamentary session, Minister for Federal Affairs and General Administration Rajkumar Gupta introduced the bill along with the committee’s report. The bill is expected to move to the National Assembly shortly and, once passed and certified by the President, could come into effect as early as mid-July.

-- This news has been updated.